Analysis Real Estate Market Valencia 2023 Q3: the R of Return

questions buying property in Valencia

The R is back in the month and, in the case of Valencia, that means Return. This is because Valencia is still one of the best cities in Spain to earn returns on buying a home. This and more in the Analysis Property Market Valencia 2023 Q3.

General situation housing market Spain

In the third quarter of 2023, the average value of houses in Spain increased by 5.0% compared to the same period last year and by 1.4% compared to the previous quarter. This means that house price growth remains stable, even despite the decline in sales and purchases observed since the last quarter of 2022.

In the first seven months of the year, sales fell by -13.7% compared to the same period in 2022, according to notaries’ data. Comparing this with the volume of 2019, the year prior to the disruption caused by the pandemic, sales in 2023 are still 13% above that level.

Provinces Spain Analysis Real estate market Spain 2023 Q3

Property prices Valencia vs other regions in Spain

The autonomous region of Comunidad Valenciana sits above Spain’s national average with a 7.0% year-on-year increase in house prices. So is Valencia province, with 7.2%. In Valencia city, the rate is as high as 8%.

Nevertheless, prices per square metre remain attractive when compared with those of other popular regions in Spain. In the Comunidad Valenciana, the average price is €1,344/m2, in the Comunidad Madrid €2,988/m2, Catalonia €2,173/m2 and the Balearic Islands €2,828/m2.

As for the major cities in Spain, Valencia city still has a relatively low square metre price of 1,933 €/m2, when compared to the other largest cities. In the city of Madrid, it is 3,744 €/m2 and in Barcelona 3,665 €/m2.

Cities Spain Analysis Real estate market Valencia 2023 Q3
Average m² prices by city (n.b.: only Catalonia to Madrid are on this image)

House prices Valencia city by district

In Valencia city’s districts, we see notable changes every quarter and so too this quarter. This time, for instance, we see the districts of Jesús, Benicalap and Campanar stand out above the rest in terms of price increases. Compared to last year, these rose by more than 14%.

What is less noticeable are the city’s most expensive districts: Ciutat Vella, Ensanche and El Pla del Real once again lead this list, with prices per square metre above €2,300. There is also little change in these square metre prices compared to last quarter.

Valencia districts analysis Real estate market Valencia 2023 Q3

Return on rent Valencia

The gross rental yield remains 4.7% in Valencia city, making it very stable. In fact, the yield rate is one of the highest in Spanish cities at the moment, and depending on the neighbourhood, it can be even slightly higher.

The stable return rate is mainly due to the huge demand for rental properties in Valencia, combined with the low supply. Buying a house in Valencia purely for rental is therefore still a method to get a quick return on your investment.

Map districts Valencia analysis Real estate market Valencia 2023 Q3
Average price per m² - Percentage price increase year-on-year - Average return

Conclusion real estate market Valencia 2023 Q3

While average house prices are growing along with the overall positive figures of real estate in Spain, Valencia still stands out. This is because growth in Valencia remains above average compared to other areas in the country and in doing so, the city also has one of the best return rates. Prices per square metre are still a lot lower than prices in other popular areas in Spain, meaning there is still room for growth. So in addition to return on rental, buying a property in Valencia means you are also making a long-term investment, as property prices are still set to rise.

Want to buy a flat in Valencia to rent out for the medium or long term? Or are you just looking for a villa for the family, to fulfil your emigration plan? We are certified estate agents in the whole Comunidad Valenciana and can help you in both the city and the region. Let us know what you are looking for in a Property Finder Service and we will go to work for you.

If you have more questions about the property market in Valencia, feel free to get in touch.

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